Business leaders have called for a complete halt to raw jute exports, citing lower production last season, soaring prices and an acute shortage of raw materials that is threatening the survival of jute mills.
The Bangladesh Jute Spinners Association (BJSA) formally submitted an application to the Ministry of Commerce and the Ministry of Textiles and Jute on January 1, seeking an immediate suspension of raw jute export orders.
On Sunday, a BJSA delegation held a meeting with Commerce and Textiles and Jute Adviser Sheikh Bashiruddin to press the demand.
In its application, the association said raw jute output declined compared to previous years due to natural disasters and other factors.
Although the government issued a gazette in September allowing conditional exports of raw jute, which temporarily eased supply pressures, prices have again surged to between Tk 4,700 and Tk 5,000 per maund.
Because of the high prices and supply shortage, jute mills are unable to procure raw jute in line with their requirements, the association said, warning that many mills are on the brink of closure. Such a scenario would pose a “grave threat” to the country’s jute industry, it added.
BJSA Chairman Tapas Pramanik told reporters that rising prices and export opportunities have encouraged illegal hoarding of jute by some traders, pushing prices up further. “Farmers are not benefiting from the price hike; instead, hoarders are making profits and creating chaos in the jute market,” he said.
He warned that unless raw jute exports and illegal hoarding are stopped, genuine jute farmers and all stakeholders in the sector would suffer. Pramanik also claimed that a significant amount of black money has been invested in jute hoarding.
The unchecked rise in the prices of jute products has already begun to erode Bangladesh’s competitiveness in the global market, he said, adding that foreign buyers may again turn to alternative products. “Once those markets are lost, it will be very difficult to regain them,” he cautioned.
Responding to the concerns, Commerce Adviser Sheikh Bashiruddin said the government would adopt a zero-tolerance policy against illegal jute hoarding.
He announced that legal action would soon be taken to curb hoarding in four major jute-producing districts.
The adviser also said the application to completely suspend raw jute exports would be reviewed. Addressing concerns over a shortage of jute seeds, he assured business leaders that steps had already been taken to ensure the availability of quality seeds in the current season, and that no seed crisis was expected.